Business, general

Sematech may lose Pentagon funding

Article Abstract:

The Department of Defense will withdraw its funding of Sematech, a government-industry joint venture for the development of advanced US semiconductor technology, in 1993 unless funding is restored by Congress. Sematech was established to ensure that US companies developed the worlds-best semiconductor technology, and the Defense Department has invested $500 million since 1987. With the end of the Cold War, however, the Defense Department and some member firms are re-evaluating their commitment to strategic computing technology. Additionally, IBM and Motorola Inc, two member firms, are establishing their own international semiconductor joint ventures that will likely reduce the need for a domestic chip-development pact. Sematech has made some research gains, but industry observers note that the alliance must justify its existence under current political circumstances. The government pull-out, along with increased corporate reticence to make further investments, could seriously hurt Sematech.

Cyrix to unveil plug-in version of the 486 chip

Article Abstract:

Cyrix Corp will introduce a plug-in version of Intel Corp's 80486 microprocessor to inexpensively upgrade computers with 80386 chips. Cyrix hopes to capitalize on confusion in the microcomputer market and capture some of the market held by 80486 computers. The Cyrix chip will cost about $400, while a new 80486 computer costs about $2,000. Analysts say Cyrix is not large enough to capture much market share, but the 80386 market is large, with 20 million installed machines, and marketing the new chip will make Cyrix more visible among large business-computer buyers. To market the chip, Cyrix has made a service agreement for Xerox technicians to replace 80386 chips with the new Cyrix chip. Cyrix will be the only company offering an 80386 upgrade, including Intel. Intel tried to produce an upgrade but says machines with an upgraded processor still had less memory and disk drive capacity, and often did not have comparable graphics quality to new 486 machines.

Memory-chips supply is hit by Japan blast

Article Abstract:

The semiconductor industry is evaluating the effects of a July 1993 explosion at prominent Japanese semiconductor firm Sumitomo Chemical Co on the worldwide supply of epoxy resin, which is used in chip packaging. The industry has been struggling with an increased demand for DRAM (dynamic random access memory) chips and dwindling investments in new Japanese plants. New plants that have opened in Taiwan and South Korea have not contributed significantly to the DRAM supply, and the accident has left many semiconductor firms unsure of a continued supply of the sophisticated resin. Prices of the chips have risen as much as 50 percent in some informal 'spot' markets since the blast, and analysts are unsure if they will fall back as quickly, causing panic among some brokers. Leading semiconductor firms Motorola Inc and Advanced Micro devices are exploring alternate chip packaging means to preclude other supply problems.